Renuka Sane, Susan Thomas
This paper examines the existing implementation of the National Pension Scheme against the goals with which it was created. It finds that there are certain critical areas in which the NPS has deviated. These include multiplicity of schemes, lack of investment choice, low transparency of the system, and a lack of focus on keeping asset management fees low. These gaps are well-understood and can be corrected with regulatory interventions. There remain other policy issues that need to be addressed. These include well designed payout policies, and occupational pension systems that will leverage the institutional development of the NPS to include the informal workforce.
Citation: The way forward for India's National Pension System, Renuka Sane, Susan Thomas. IGIDR Working paper WP-2014-022, July 2014.